TSX Flat on Trade Suspense
Canada's main stock index opened flat on Thursday, as gains in mining and technology shares were offset by losses in energy shares, while investors assessed U.S. tariff threats and awaited signs of progress on trade talks.
The TSX Composite Index docked 46.03 points to commence Thursday trading at 26,926.29
The Canadian dollar was down 0.07 cents
at 73 cents U.S.
In company news, Bloomberg News reported Canada Goose's private equity backer, Bain Capital, is considering a sale of its stake in the luxury brand. Canada Goose shares gained 76 cents, or 4.3%, to $18.48.
Canada is seeking to finalize a free trade deal with Southeast Asian nations as part of an attempt to expand into new markets, Foreign Minister Anita Anand said, as a response to the hefty tariffs imposed by the U.S.
President Donald Trump on Wednesday announced a new 50% tariff on copper, set to go into effect on August 1, and threatened to slap 50% levies on exports from Brazil.
Trump also issued new tariff letters to seven minor trading partners, adding to the 14 others issued earlier in the week.
Canada, which aims to reach a trade deal with Washington by July 21, could impose counter-duties on the U.S. if no agreement is reached.
ON BAYSTREET
The TSX Venture Exchange gained 5.64 points to 763.17
The 12 TSX subgroups were evenly divided, with energy diving 1.3%, while information technology down 1%, and gold, dulling 0.6%.
The half-dozen gainers were led by consumer discretionary stocks, better 0.6%, industrials, stronger 0.5%, and real-estate, nosing up 0.1%.
ON WALLSTREET
Markets pointed upward soon after Thursday’s open, despite suspense over the direction of trade talks, jitters making themselves felt in the latest set-to between the U.S. and Brazil.
The Dow Jones Industrials hiked 147.5 points to begin Thursday at 44,605.80.
The S&P 500 edged higher 0.95 points to 6,264.21.
The NASDAQ Composite dipped 65.38 points to 20,546.16.
The moves came after President Donald Trump said late Wednesday that a 50% U.S. tariff on imported copper will take effect Aug. 1.
Trump also announced a 50% tariff on Brazil partly in retaliation for the current trial against former Brazilian President Jair Bolsonaro for his role in an alleged attempt to overturn the country’s 2022 election results.
The move was also due to the “very unfair trade relationship” with Brazil, Trump added, saying it has been “far from Reciprocal.”
Brazilian President Luiz Inacio Lula da Silva later said that the country would respond to the 50% levy in accordance with its economic reciprocity law.
Prior to the president’s announcement of levies on Brazil, he sent letters that dictated new U.S. rates on the imports of at least seven additional countries. He had also sent letters laying out new rates earlier this week to the leaders of 14 other countries, such as Japan and South Korea. The duties are set to take effect Aug. 1.
Prices for the 10-year treasury fell, raising yields to 4.37% from Wednesday’s 4.34%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.21 to $67.17 U.S. a barrel.
Gold prices gained $2.90 at $3,323.90 U.S. an ounce.
